According to Jamie @ VWVortex, Kerri Martin has been let go today.

For those that may not know, up until today she had been VW of America's marketing dirctor, and prior to that she was in charge of marketing at MINIUSA.

 

interesting Dave .....

 

so, next up, Hyundai? or BMX?

 

Probably she is homesick and going back to MINI.

 

Major shakeups at VW. Porsche has bought almost 30% of it

By DIANA T. KURYLKO | AUTOMOTIVE NEWS

AutoWeek | Published 01/10/07, 10:37 am et

Wiedeking says.

"VW needs to improve its productivity and quality, Wiedeking says. But he says he thinks the automaker one day can rival Toyota Motor Corp.

"Wiedeking would not comment on the fate of Wolfgang Bernhard, VW's brand chief. A VW supervisory board meeting today is slated to decide the fate of the executive. VW's future does not depend on an individual but, rather, on a management team, Wiedeking says."

Wiedeking is AG Porsche CEO

If she was responsible for some of those ads ... AG Porsche probably aint happy with them. Not the right image. Also Bugatti and Lambo lines considered "Toys" whatever that means?

As for the fate of the exotic brands Bugatti and Lamborghini -- which VW acquired under the leadership of former CEO Ferdinand Piech -- Wiedeking says "no toys anymore."

 

A little different take

 

i can apply for the job then..

 

hmmm... this probably means CP+B is booted too!

Ok, I'll say it.... they never should have abandoned MINI

 

i thought the snap! commercials were funny...

 

Kerri Martin is only 36? Damn she looks more like 45....

Personally, never really cared that much for the late VW ads coming from CP+B. I guess the new management wasn't too thrilled with the "German Ricer" image being protrayed.

At any rate, it finally has hit on the head of some of the big honchos at VW that the marque is in deep trouble and cleaning the house is the order of the day. Marketing alone is not going to ensure the long term appeal of VW products, specially in the US. VW needs to clean up their act in terms of product quality, product appeal and post-sale product support. Audi has the lowest resale values of any luxury brand in the country in despite of very competitive (if not a little stale) product.

I also read somewhere that VW plans to dump their Spanish subsidiary, SEAT and just leave VW, Audi and Skoda.

I am beginning to think that CP+B may get the boot if not already. They should have never abandoned the BMW/MINIUSA account but like everything else in business, money talks.

 

I do not believe that the reason. The real reason, from what I can read, IMO, Porsche is cleaning house. VW execs are getting the boot. To put this into perspective ...

Ferdinand Piëch, son of the sister of Ferry Porsch, is now running VW.

Wiedeking runs Porsche

Wolfgang Durheimer Porsche AG executive VP

Martin Winterkorn Volkswagen AG Chairman

Further ...

Will Volkswagen's 'restructuring guy' go
Possible departure of Wolfgang Bernhard could mean end to cost cuts

By Aude Lagorce, MarketWatch
Last Update: 9:22 AM ET Jan 7, 2007

LONDON (MarketWatch) -- Investors are concerned that the potential departure of key Volkswagen executive Wolfgang Bernhard after a board meeting on Wednesday could spell the end of restructuring efforts at Europe's largest carmaker.

Bernhard, the head of the VW brand and a member of the management board, has been in a precarious position since former group CEO and long-time mentor Bernd Pischetsrieder was ousted in a boardroom coup in November and replaced with Audi boss and union-favorite Martin Winterkorn.

Winterkorn, a close ally of VW Chairman Ferdinand Piech, will present a new company strategy to the presidium committee of the supervisory board on Wednesday and then the full board on the next day. His proposed changes are expected to include the division of the group's brands into luxury and mass-market categories and the creation of company-wide posts for production and R&D. ...

Analysts believe Winterkorn will also reorganize Volkswagen brands into two categories: premium brands, including Audi, Bentley, Bugatti and Lamborghini, and volume brands such as VW, Skoda and Seat.

Some observers also worry that his departure would further strengthen Chairman Piech's position, and through him the influence of the Porsche group, which already owns a 27.5% stake in VW and may feel emboldened to launch a takeover. Piech sits on the Porsche board. His grandfather, Ferdinand Piech, founded the sports-car maker.

Finally ... VW's Bernhard resigns; Winterkorn powers up

By Shawn Langlois, MarketWatch
Last Update: 1:31 PM ET Jan 11, 2007

SAN FRANCISCO (MarketWatch) -- Wolfgang Bernhard, the restructuring specialist who squeezed out cost savings from union workers during his tenure as head of the VW brand, resigned Thursday as Volkswagen AG's new chief executive extended his reach.

"The company would like to thank Dr. Bernhard for his work in the past years and wishes him all the best for his future career," VW said in a curt release.

Martin Winterkorn, a close ally of VW Chairman Ferdinand Piech and a favorite among blue-collar employees, will take over and expand his role as VW Group CEO, a position he wrestled from Pischetsrieder in a boardroom coup in November.

There is a classical power struggle going on here. In the US we would call it a hostile takeover. VW Bylaws state that no one investor can control more than 20% of the vote despite how many shares they own. Porsche has taken this to German court with a ruling due in March. They want to own about 30% of the stock.

Looking at the players and the moves, many top Porsche guys sit on the VW Board of Directors. The Chairman of the Board is the son of Ferry Porsche's sister. Piech also sits on the Porsche Board of Directors as he is Ferdinand Porsche's grandson.

Some speculation is that Porsche wants VW DSG technology and expects to use it in 09. Bugatti, Lambo .. not sure how much is actually made there but Porsche is the most profitable car maker in the world (a major turnaround) it may be appearing they want VW running as THEY want it run.

Who knows but clearly there is something going on over there. I would not put to much stock in VW having much say in anything.

 

Ferdinand Piech is the Nemesis of VW. The man just can't never leave out the door!

Piech is a mad man and he is responsible for the current state of affairs at VW. He is the "mastermind" behind such monumental flops as the now defunct Phaeton sedan, the answer to a question no one ever asked....

And let's not get into how this clown neglected the "bread and butter" VW cars (Beetle, Jetta and Golf) for years to no end allowing these models to become stale and uncompetitive, whi he was pressing ahead with a doomed plan to turn VW into a luxury brand that it was not and will never be...

Piech is bad for VW and if he gets back at the helm I see a pretty bleak future ahead for them.

 

Piech is the VW Chairman of the Board. He is running the show.

Also note that Wiedeking has told VW their toys ... Bugatti and Lambo will be going bye bye. Time to build cars for real people. Dunno what that mean, maybe they sell them off

The rug is being swept clean ... VW execs leaving, Porsche taking over.

BTW, I love your sig

 

Well if Porsche is taking over, VW's future is looking good!

I'm already a huge VW fan, and I'd say this is good news.

 

What the heck else does Porsche sell? Or is that "no more toys that might take sales from our high end cars!" Talk about the tail wagging the dog..... But think of this, maybe Porsche is making so much money, they can buy and shut down anyone esle who could make a car that competes with the Porsche....

With Porsche at the helm, what can we expect for performance from VW? Anything more rad than a V32/V36? Will the new Sciracco get toned down so it doesn't step on entry Boxters?

Seems like it will be a while before we can see clearly here....

Matt

 

I was just thinking....I really liked some of Kerri's efforts. The GTI commericals, both "Fast" and "Un-pimp" were awesome, and really attracted me, the typical GTI buyer.

The "safety" and "low ego" campaigns were poor, however.

 

Cmon Matt, You really think they are "toys"? I can't believe you wrote that.

Here is the actual quote

He also said VW could one day become as successful as Toyota, but that in order to mine the gold locked in Volkswagen's geological strata, "you have to dig day and night." Of course, more telling is this quote, a reaction to the question of Bugatti and Lamborghini's fate: "no toys anymore."

So what does that mean?.

How can you compare cars that are hardly daily drivers for anybody starting at 250K with cars that top out at about $150K?

Apples and oranges.

 

niche-market expensive sports cars as toys, but that's not bad....

As far as price point, my mom thinks pretty much all cars are too expensive now, and still misses her Morris Minor! So I think that's a matter of perspective too.

I just don't want Daddy Porsche to clip VW sports car wings to protect home turf. Not putting a larger range of motors into the Boxter/Cayman is an example that makes me pessimistic.

Matt

 

Hmm, wasn't there recently a 350k toy for the filthy rich from Stuttgart?

Anyway, I do believe that in those circles some of the same buyers for top end P-cars consider Gallardos for a few bucks more, or even Murcielagos, after all what is a 100k or so And with Porsche at the helm it would seem that they would kill any plans for less spendy Lamborghinis and perhaps quash higher end Audis (mmmm, R8 ). With the family style Panamera coming out who knows what they may do, but I really hope they do not try to muck with the other brands ability to expand or with any models that encroach on Porsche's market (ie the RS version of the TT, etc).

 

If Mini had a clue, which judging by the complete lack of TV advertising for Mini, they don't; they should look into Kissing her tush and asking her back.

 

Oops, I stand corrected, the GT was $440,000 list

 

Some are guessing they sell off the Bugatti/Lambo lines. Other thinking is they make two divisions: Porsche, Lambo, Bugatti and the VW, Audi, Seat for mass production. Many dont think two divisions will happen.

As to the HP issues for Boxsters/Caymans, that is a WHOLE other stink. Basically ... "Thou Shalt Not Touch the Icon" Caymans already quicker than base 997 and that royally irritates the Iconists. Here is another quote from the original article I didnt think anyone cared about:

#14 Wolfgang Durheimer Porsche AG executive VP, R&D

Why he is speeding past others: Under his watch, Porsche has released the ultimate attainable mid-engine sports car, Cayman. It's goodness rubbed off on Boxster, with new engines, stiffer bodies.

Philosophical shift: Holding back on the Cayman's power so it doesn't supercede the 911 flagship. Hope Durheimer gets enough reserve performance from the 998 to let loose on the Cayman.

This is well known. 997 getting a mid-cycle face-lift in 08. 5 - 25 HP gain across the model range. Opening up HP increase for Boxsters/Caymans in 09 but still very small numbers.

With the upcoming 998 ... new ball game but thats 4 years out ... but planning is now. Some ppl hoping the engineers finally put out a mid-engined 911 (or two models, one for the rear-engined Iconists and one mid-engined). Porsche moves HP up very slowly. They dont seem to care or move in response to say ... 400HP M3 or Blue Lightning Z06. As they say, they dont revolutionize ... they evolve.

Good point on the Panarama. Audi TT is a non-issue. I just read the other day they are letting it go. Its no competition except for base models. Base model sales are already poor. My dealer says that they made a big mistake coming out with the base model Cayman because it doesnt sell. To much $$. They are many in stock inventories just sitting there.

I dont agree with the high end. Most ppl in the Porsche market "aspire" to reach the GT3 level. At least according to my dealer, buyers of the TT are not the purists but the rich who who do want a "status symbol". The purist dream of getting a GT3 (or GT3RS) which is not that far out of line. Lambos are up in the $250K range ... For that prices, hell you can buy two TTs and a Boxster for your daughter!

 

MINI sold 39171 cars, all models, in US in 2006
Porsche sold 36095 cars, all models, in US in 2006

9% difference. I guess that makes MINI a niche market and hence a toy?

 

The thing is, the dealer's take on it is based on the past, not the upcoming and future models. The new TT is supposedly a much better driver then the prior one, and an S or RS version would certainly be cross shopped to the Caymen and Boxter set IMHO (and honestly, I'm sure a big segment of Porsche owners are buying them as status symbols as well, which is why they are making a 4 door, have made an SUV, and created the 'affordable' Boxster in the first place). So the concern is not just about what models have existed before but what putting Porsche in control might do to the developement of other models in the VAG group that might be deemed competition for the market share even if they are not the same price.

With regards to the high end market, honestly, for a certain segment of top end sports car buyers the difference in costs from 150 to 200k is not really an issue, just bumps up the monthly payment a bit. And I'm sure plenty of GT2s and 3s were not bought by the purists, but rather for the bragging rights and good valet parking

 

Niche, oh yes for sure. Although Minis look like toys I'd say by my definition of a car toy they are not though, because they are practical and affordable. I think when people talk about cars as toys it is because the car in question is impractical or excessive, perhaps deemed uneccessary, and often costly.

As long as I can shop Costco (tp, paper towel packages and all) and drive more then two people around (and yes I do) the Mini is not a toy

PS: Not to get too OT, but I've seen you mention the quelching of HP as the big gripe about the Cayman S vs the 911 - however I think the lack of LSD is kind of a more important issue, no?